Mr Justice Jacobs today handed down judgment in favour of the Defendant in Anderson v Sense Network  EWHC 2834 (Comm).
Simon acted for the successful Defendant Network, instructed by RPC, against over 90 Claimants. The case arose from a Ponzi scheme orchestrated by an Appointed Representative of the Defendant in which millions of pounds were lost. The Scheme was deliberately and systematically concealed from the Defendant.
Jacobs J held that the Defendant was not responsible. He rejected claims under section 39 of FSMA, common law agency principles, and vicarious liability. He also rejected the contention that knowledge of the Scheme on the part an employee of the Appointed Representative, who had certain compliance responsibilities, fell to be attributed to the Defendant. He found that the Defendant operated proper supervisory systems and that the continued operation of the Scheme did not result from any actionable failing on the Defendant’s part. In any event he held that the Scheme would have continued to operate in any event so that the claim failed on causation even if the alleged breaches had been made out.